Affinity Health Plan Inc.

“Form 990 review the financial staff compiles the financial and other information required in the 990 return. Kpmg llp prepares the return and the information is reviewed by the company's cfo. A final copy of the form 990 is made available to the entire governing body before filing with the irs.”

“Process to monitor transactions for conflicts of interest 1. Actual or potential conflicts of interest must be disclosed to appropriate management personnel, human resources or the corporate compliance officer. 2. Employees must seek guidance and approval from appropriate management personnel prior to pursuing any business or personal activity that may constitute a conflict of interest. 3. Management, with purchasing authority, will complete a related party questionnaire annually to identify any potential or actual conflicts of interest. 4. Employees, upon hire and annually thereafter, review the code of ethics which includes information on conflicts of interest. In addition, employees are required to sign an attestation, upon hire and annually thereafter, that they acknowledge and understood the code of ethics. If a conflict of interest is found, persons with a conflict recuse themselves from decisions related to the conflict.”

“Compensation review the process for determining compensation for the ceo and cfo included review and approval by a compensation committee (the "committee") comprised of independent directors charged with this responsibility, consideration of comparability data and contemporaneous substantiation and documentation of the deliberation and decision. Affinity health plan's annual compensation program for these positions and other officers and key employees includes: a) compensation for the chief executive officer is established by the compensation committee and ratified by the board of directors of affinity health plan. The board and the committee have established compensation terms for the ceo considering comparability data for ceo positions in similar organizations in their deliberations and decision making. These decisions are documented in accordance with legal requirements and best practices. B) compensation decisions applicable for other officers and key employees, including incentive bonuses, merit increases, promotional salary adjustments, and starting salaries for newly hired officers and key employees are made after review of comparability data from published sources for similar positions in the relevant labor market. Published comparability data utilized includes industry specific data. Internal data is reviewed as well with the objective of ensuring internal equity with similarly situated staff. Compensation decisions impacting those of the foregoing positions that are also deemed to be "disqualified persons" under the internal revenue code (e.g., chief financial officer) are made by the committee (and ratified by the board) in accordance with "intermediate sanctions safe harbor" standards utilizing the same processes as are applied to the ceo (discussed above).”

“Document disclosure the organization makes its governing documents, conflict of interest policy, and financial statements available upon request.”

“Form 990, part i, line 1 and part iii, line 1 the mission of affinity health plan is to improve the health and well-being of its members, their families, and their communities in collaboration with primary care providers. Affinity strives to be the health plan of choice for its members and its providers -- known for assuring access to high quality, cost-effective care; delivering the best customer experience; and contributing significantly to achieving a patient-centered health care system.”

“In october 2020, affinity entered into an asset purchase agreement ("apa") to sell its health plan operations to molina. The parties subsequently received all required regulatory approvals from the new york state department of health and the new york state attorney general and closed on the transaction on october 25, 2021. The purchase price for the transaction was $500,000,000, less the amount by which the target net asset value ("nav") is greater than the estimated nav of the assets and liabilities assumed by molina as of october 25, 2021. Therefore, affinity recorded a gain on the sale of $349,925,000 less transaction costs of $5,409,000 or $344,516,000. For purposes of the audited financial statements, this gain is recorded in other non-operating revenue (expenses) in the statement of operations and changes in net assets as of december 31, 2021. For purposes of form 990, the gain is reported as an other change in net assets or fund balances on part xi, line 9.”

“Emergency room claims : program service expenses 105,203,356. Management and general expenses 0. Fundraising expenses 0. Total expenses 105,203,356. Primary care: program service expenses 70,286,233. Management and general expenses 0. Fundraising expenses 0. Total expenses 70,286,233. Beacon-outpatient substance ab: program service expenses 56,291,482. Management and general expenses 0. Fundraising expenses 0. Total expenses 56,291,482. Beacon ibnr expense : program service expenses 31,650,278. Management and general expenses 0. Fundraising expenses 0. Total expenses 31,650,278. Diagnostic tests lab & x-ray c: program service expenses 28,407,731. Management and general expenses 0. Fundraising expenses 0. Total expenses 28,407,731. Medicaid stop loss insurance : program service expenses 19,667,461. Management and general expenses 0. Fundraising expenses 0. Total expenses 19,667,461. Outpatient facilities costs: program service expenses 17,471,746. Management and general expenses 0. Fundraising expenses 0. Total expenses 17,471,746. Dental capitation : program service expenses 15,335,732. Management and general expenses 0. Fundraising expenses 0. Total expenses 15,335,732. Health home claims : program service expenses 10,862,368. Management and general expenses 0. Fundraising expenses 0. Total expenses 10,862,368. Capitation expenses: program service expenses 6,119,699. Management and general expenses 0. Fundraising expenses 0. Total expenses 6,119,699. Covered lives : program service expenses 5,209,909. Management and general expenses 0. Fundraising expenses 0. Total expenses 5,209,909. Other professional svc-hcra : program service expenses 3,262,249. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,262,249. Vision capitation : program service expenses 2,920,369. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,920,369. Share savings expense : program service expenses 2,628,929. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,628,929. Other expenses: program service expenses 2,586,489. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,586,489. Lab hcra : program service expenses 2,361,553. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,361,553. Emergency room hcra : program service expenses 2,035,476. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,035,476. Nursing facility : program service expenses 1,882,521. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,882,521. Beacon hcra : program service expenses 1,870,250. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,870,250. Outpatient claims-ibnr : program service expenses 1,254,625. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,254,625. Outpatient non valuated expens: program service expenses 219,635. Management and general expenses 0. Fundraising expenses 0. Total expenses 219,635. Chiropractic : program service expenses 159,553. Management and general expenses 0. Fundraising expenses 0. Total expenses 159,553. Dental hcra : program service expenses 108,837. Management and general expenses 0. Fundraising expenses 0. Total expenses 108,837. Nursing facility hcra : program service expenses 253. Management and general expenses 0. Fundraising expenses 0. Total expenses 253. Profession service-ibnr : program service expenses -480,314. Management and general expenses 0. Fundraising expenses 0. Total expenses -480,314. Beacon outpatient drug&alcohol: program service expenses -1,208,240. Management and general expenses 0. Fundraising expenses 0. Total expenses -1,208,240. Third party recoveries - reins: program service expenses -25,870,955. Management and general expenses 0. Fundraising expenses 0. Total expenses -25,870,955.”

“Organizational member distributions -195,000,000. Distribution to state of new york -110,000,000. Gain on sale of health plan, net 344,516,346.”